why the saving accounts are needed?

Answer 1

they are rip offs. we have one but end up losing more money than the interest earned. we lose money due to the fees. we thought it would be a good idea to keep money in a seprate account than our checking, so we would not over spend.

instead we need to be more careful of what we spend and close the savings account. or put the money into a differant type of account

Answer 2

Saving accounts have a place in the investment ladder. The main advantages of the saving account is Safe, Simple and Liquid. Lets look at some of the other place that you can put your money. Lower on the ladder ... you may put your money under your mattress, or bury it in a can in your backyard. This would be Simple and Liquid but not very safe.

One step up the ladder you may choose to invest your money in a CD Certificate of Deposit. Again this is Simple but less Liquid since the money is required to stay in the bank for a set period of time. Also it is Safe since you money is insured by FDIC.

We can't list all the investments here but Stock have better return but also provide more risk and are not as safe as the bank.

The bottom line is that the purpose of the saving account is for someone just starting out or someone the need a safe and liquid place to place there money for a short period.

Answer 3

savings accounts are a great way to "forget" about extra money & earn interest on money that you really don't need for expenses but in the case of needing emergency funds it is immediatly available for your use. i noticed your first answer about them being "rip offs" is wrong! check with your finacial institution on the fees inquired but usually if you don't withdrawl more than the times allowed per quarter/monthly(however your bank does it) you will not be charged fees but if you don't have the extra cash just use a checking account or you will probably go over the times your allowed to withdrawl money-however if you are just wanting to put back extra cash & earn great interest you should consider a CD the interest is better but the penalty for early withdrawl can hurt.

happy banking!